No tax is required to be deducted at source if the estimated total income of the employee is less than the minimum taxable income (Rs. 2,20,000/- in case of Individual, HUF, AOP, BOD and AJP. Nil for others.)

TDS Rate

As per Income Tax, Surcharge and Education Cess rates applicable on the estimated income of employee for the year

TDS Rates on Payments other than Salary and Wages to Residents (including domestic companies)

Section

For Payment of

On Payments Exceeding

Individual/HUF

Others

193

Interest on Debentures

Rs. 5000/-

10%

10%

194

Deemed Dividend

No minimum

10%

10%

194 A

Interest other than on securities by banks

Rs. 10000/-

10%

10%

194 A

Interest other than on securities by others

Rs. 5000/-

10%

10%

194 B

Winnings from Lotteries / Puzzle / Game

Rs. 10000/-

30%

30%

194 BB

Winnings from Horse Race

Rs. 5000/-

30%

30%

194 C (1)

Payment to Contractors

Rs. 30000/- for single payment

Rs. 75000/- for aggregate payment during Financial Year

1%

2%

194 C (2)

Payment to Sub-Contractors / for Advertisements

194 D

Payment of Insurance Commission

Rs. 20000/-

10%

10%

194 EE

Payment of NSS Deposits

Rs. 2500/-

20%

NA

194 F

Repurchase of units by Mutual Funds / UTI

Rs. 1000/-

20%

20%

194 G

Commission ons Sale of Lottery tickets

Rs. 1000/-

10%

10%

194 H

Commission or Brokerage

Rs. 5000/-

10%

10%

194 I

Rent of Land, Building or Furniture

Rs. 180000/-

10%

10%

Rent of Plant & Machinery

Rs. 180000/-

2%

2%

194 IA

Transfer of Immovable Property (w.e.f. 01.06.2013)

Rs. 50 lacs

1%

1%

194 J

Professional / technical services, royalty

Rs. 30000/-

10%

10%

194 J (1)

Remuneration / commission to director of the company

–

10%

10%

194 J (ba)

Any remuneration / fees / commission paid to a director of a company, other than those on which tax is deductible u/s 192.

–

10%

10%

194 L

Compensation on acquisition of Capital Asset

Rs. 100000/-

10%

10%

194 LA

Compensation on acquisition of certain immovable property

Rs. 200000/-

10%

10%

Notes:

No surcharge or education cess is deductible / collectible at source on payments made to residents {Individuals / HUF / Society / AOP / Firm / Domestic Company) on payment of incomes other than salary or wages.

TDS at higher rate of 20% has to be deducted if the deductee does not provide PAN to the deductor.(section 206AA)

All persons who are required to deduct tax at source or collect tax at source on behalf of Income Tax Department are required to apply for and obtain Tax Deduction or Tax Collection Account Number (TAN).

Issue of TDS Certificate

1. Section 192 (TDS on Salary) :

The certificate on Form No. 16 should be issued by the deductor by 31st day of May of the financial year immediately following the financial year in which the income was paid and tax deducted.

2. In all other cases :

The certificate on Form No. 16A should be issued within fifteen days from the due date for furnishing the “statement of TDS” under rule 31A.